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| Subject: Computing Income tax |
Hi All, Just want to know how to compute the net salary when I receive a gross salary of $45000 CAN with a spouse and 2 kids in Nova Scotia. Are there an formulas to compute this. Was told that one has to take 15% of gross income as tax.
Cheers,
Bikky
[20-06-2007,09:41]
[***.220.171.169]
Bikky |
(in reply to: Computing Income tax)
I think it may be closer to 25%
[20-06-2007,10:18]
[***.121.220.199]
sharon |
(in reply to: Computing Income tax)
Thanks Sharon,
But is it possible to get some substancial amount as tax returns at the end of the year as happens in most countries?
Regards,
Bikky
[20-06-2007,10:53]
[***.220.171.169]
Bikky |
(in reply to: Computing Income tax)
when you start your job, you fill out a TD1 form. It asks you a bunch of questions. This helps the employer to only deduct what is absolutely necessary. In a perfect world, at the end of the year you do not owe anything and you don´t get much of anything back.
I am not sure what the tax rate is in NS. I would hate to see you counting on 15% tax rate and it end up being more. Maybe someone else can jump in here. I am looking at my payroll tables and I would suggest at that salary, 20-25% is the ball park.
[20-06-2007,11:17]
[***.181.198.246]
sharon |
(in reply to: Computing Income tax)
Thanks Sharon,
I just checked from
http://www.ey.com/GLOBAL/content.nsf/Canada/Tax_-_Calculators_-_2005_Personal_Tax
and if this is anything to go by then it would be 24.03%. Your are perfectly right. Are there some exemptions if my wife is not currently working? Was lucky to have got a job before landing and I need to be sure of what to indicate on this TD1 form.
Thanks.
[20-06-2007,11:27]
[***.220.171.169]
Bikky |
(in reply to: Computing Income tax)
yes, if you are wife is not working, it gives you 6-7,000 of income without tax - which will low your overall taxation rate.
Canada works on a sliding scale - the first X amount is taxed at one rate, the next amount at a slightly higher rate. The intention is to allow lower income families the opportunity to keep as much of their earnings as possible.
thanks for the link!
[20-06-2007,13:16]
[***.181.198.246]
sharon |
(in reply to: Computing Income tax)
Thanks Sharon. I am much grateful.
Cheers,
Bikky
[20-06-2007,15:08]
[**.136.106.30]
Bikky |
